CSG reaffirms outlook and gives detail of ammunition capacity growth

CSG NV

20/05/2026 10:29

By Jan Lopatka

PRAGUE, May 20 (Reuters) - Czech-based ammunition and arms producer CSG affirmed its 2026 outlook after posting an 8.7% rise in first-quarter operating earnings and said it continued to raise its large-calibre ammunition capacity.

The company predicted an improvement in the U.S. market for small-calibre ammunition

First-quarter operating earnings before interest and tax rose 8.7% to €372 million ($431.04 million), on a 13.8% revenue rise driven by its core defence systems business of large-calibre ammunition and arms systems

It reaffirmed its 2026 guidance of revenue to reach €7.4-7.6 billion and operating EBIT margin of 24-25%

The order backlog rose to €17 billion from €15 billion at the end of 2025

The share of sales to Ukraine on revenue dropped to 21% from 27% in full-year 2025, it said

CSG shares jumped by 11.9% in morning trade. Listed in Amsterdam in January, they have recovered losses that followed a report earlier this month

CSG denied the report by short-seller Hunterbrook Media that questioned its capacity and claimed most of CSG's large-calibre ammunition sales were recommissioned ammunition

The company on Wednesday said its artillery and tank production capacity across factories it owns or co-owns in Greece, Spain and Slovakia had risen to 800,000 rounds annually in the first quarter, from 630,000 last year

CSG anticipated its production of large-calibre ammunition would reach about 850,000 rounds by the end of this year, up from 550,000 in 2025

It expected more than half of large-calibre ammunition revenue would come from extended range shells

The company said it targeted own-production capacity for large-calibre ammunition of 1.1 million in 2028

CSG said it was also scaling up production of turbojet engines and air defence systems
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(Reporting by Jan Lopatka; editing by Barbara Lewis)

((jan.lopatka@thomsonreuters.com; +420 234 721 614; Reuters Messaging: jan.lopatka.thomsonreuters.com@reuters.net/))